Role, Time, required Inventory Term, FOBs purchase/freight/duty/tax/discou nt/return/return duty/return tax/return discount Sales Discount (in time)

3. Calc N HC, HU L DR sales returns DR cash, DR sales disccounts, CR account receivable Allowances CR A/R or Cash

4. Amort rest

Deferred expenses example

COGS = COAFS E/B Inventory.

Closing ent ry

Ext ra ordina ry repai r 1. Amort up to point

if there's net loss skip 3, 4

2. Dr A/A, Cr Cash(orAP)

*don't go beyond salvage value

Net sales Less: COGS exp Gross profit Operating Expenses Amortz / Repairs / Sales Salaries / Wages / Secretary salary / CEO / In ternet / supplies / promotion / service charges / Bad debt exp Other Revenue In terest Revenue Other Expenses In terest expenses Loss on t rade-in Net income before tax Less:Income tax expenses Net income after tax Balance sheet TIME ASSETS current asset cash / AR/ less:allowance for d a / Inventory/ interest receivable / supplies / note receivable Total current asset Fixed asset building / Less: AA, vending machine / Less AA , equipment / less AA Total fixed assets Total assets Liabilities and shareholder's Equity L iablities A/P, Salaries payable, mortgage payable, unearned revenue, income tax payable, Total liabilit ies Share holder's equity Common stock /Retained earnings Total L and SH eq

Part1

Net realizable value = EB AR EB AFDA (allowance for Doubtful) part 2 LCNRV rule

petty cash

Net realizable value

I ncome statement TIME Revenue Gross sales Less: sales discount Less: sales returns&allowances

lib &owner's equity

Revenue section

Loss in t rade-in